Uber Driverless Cars

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Uber Driverless Cars

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Table of Contents

Introduction        1

Look Great Every Time        1

Add a Quote        1

Picture Perfect        1

Adoption        2

Introduction        2

Capturing Value        3

Protection        3

Ease of Imitation        3

Life Cycle Phase        3

Other Parties        3

Competition        4

Introduction        4

Competitors        4

Conclusion        4

Timing of Entry        5

Introduction        5

Innovation Characteristics        5

Advantages of Moving First        5

Disadvantages of Moving First        5

Conclusion        5

Conclusion        6

Introduction

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Adoption

Introduction

The rate of adoption is how quickly the market is likely to accept the new innovation. According to Roger’s model^[a],each individual will go through a five step decision making process starting with knowledge, when the potential customer first heard about the innovation but does not have enough information or completely understand it. Persuasion is the next step, where the individual become interested in the innovation and starts to look for information about it. After understanding how the innovation works, the individual will consider the benefits and drawbacks of it and then decide if to accept or not. If accepted, he/she will then start implementing the innovation whilst also gaining feedback on the usefulness which allows them to make a final confirmation on whether or not to continue using the product. However, if the innovation was rejected at the decision stage, it does not necessary mean there will be no second chance. There could be new information given to the individual and they could reconsider and might result in late adoption.

Roger’s model also identified five key aspects of the innovation that would affect the rate of adoption. Firstly, the relative advantage of the innovation compared to its predecessors, thus how much the new technology has improved. Driverless Ubers has improved considerably from human-driven cars, it offers more privacy to the passengers as no one will be listening to their conversations, and will also provide one more space in the driver’s seat. Increased safety would be another important aspect, due to elimination of human error or oversight.

Secondly is the compatibility with past values and standards, for example, if there is a great shift in behavior of the user or require various additional products to support the innovation. This will not be the case for driverless Ubers as there will be no difference in the process of ordering compared to a regular taxi.

Thirdly, the complexity or how difficult it is for the user to learn to use the innovation. Which also proves to be advantageous in this case for the same reason as above.

Next is the trial ability, whether or not the customer need to commit to the product or service for a great cost or length of time at the very beginning. If that is the case, adoption might be slowed down as more potential customers will be willing to wait longer and gather more information and feedback before they make a decision. For Uber, the length of ride is entirely up to the customer. They can try the innovation at little or no cost(ref) and for as many times as they like without any commitment.

Finally, how much the improved results are visible to others, which is the observability. Most the benefits from the innovation mentioned above such as more space and reduced price are noticeable instantly, however, the results of improved safety can only be seen after some period of time from statistics^[b].

In summary, high relative advantage, high compatability, low complexity, high trialability, and high observability are the main charateristics of the innovation. All of which acts in favour to fast market adoption. Position on rogers^[c] curve

 However, as safety is a significant factor, there could be a case which can lead to slower market adoption. For example, airplanes are much safer than a regular car or train on many years of statistics(evidence), but there are still people who is afraid of airplanes due to safety concerns. Therefore, even though statistics can prove driverless Ubers are safer than regular ones, there might still be potential customers unwilling to adopt. Increasing marketing effort and more importantly, continuously improve the system to keep the accident rate minimal would reduce customer uncertainty(?).